While the housing market is in the tank and is not likely to emerge anytime soon, real estate investment in college towns continues to promise good returns (The Wall Street Journal, September 24, 2010). Marcela Treisman works for an investment firm in Michigan. Her assignment is to analyze the rental market in Ann Arbor, which is home to the University of Michigan. She gathers data on monthly rents for 2011 along with the square footage of 40 homes. A portion of the data is shown in the accompanying table; the complete data set, labeled Ann Arbor_Rental, can be found on the text website.
Monthly Rent Square Footage
645......... 500
675......... 648
: ......... :
2400......... 2700
a. Use Excel to construct 90% and 95% confidence intervals for the mean rent for all rental homes in Ann Arbor, Michigan.
b. Use Excel to construct 90% and 95% confidence intervals for the mean square footage for all rental homes in Ann Arbor, Michigan.